Energy stocks have done particularly well this year, dominating some sectors in Q1 2022, by rising almost 200%. Still, there may be certain energy stocks that investors should keep an eye on, one of which being Shell PLC (NYSE: SHELL).
Dan Farb of Mill Pond Capital, in a ບັນທຶກໃຫ້ລູກຄ້າ, explained his view on Shell’s ເງິນປັນຜົນ potential:
“Shell should reinstate the pre-Covid dividend, that would go a long way to restoring management’s credibility with investors and rerating the stock.”
In 2020, the company slashed its dividend by 65% when the Covid pandemic destroyed demand for oil. Currently, the company yields 3.6%, maintaining a conservative payout ratio of 20% based on the projected earnings for 2022.
Like most energy companies, the shares have been on fire in 2022, up over 30% year-to-date (YTD). Steady trading volumes throughout May, have kept the shares trading above all daily Averages ການເຄື່ອນຍ້າຍງ່າຍດາຍ with a likely resistance line created around $58.
Despite having varying opinions on the company’s dividend, most analysts agree on the strong buy consensus for the shares. For the next 12 months, analysts predict that the average share price could reach $68.34, an ເພີ່ມຂຶ້ນ 16.72% ຈາກລາຄາຊື້ຂາຍໃນປັດຈຸບັນຂອງ $58.55.
Shell earnings beat
ລາຍຮັບສໍາລັບ Q1 beat estimates while generating huge cash flow to the tune of $10.4 billion for the quarter. Earnings per share (EPS) was $1.20, versus Wall Street expectations of $1.09.
ຖ້າມັນບໍ່ແມ່ນ ສຳ ລັບ Russian headwinds and some debt accrued during 2020, the free cash flow could have amounted to $17,8 billion, roughly 8.3%, of the company’s current market cap.
Guidance given for production going into Q2 was weaker than expected, with gas production increasing by 4%, while refinery utilization is planned to fall from 71% to 69% for Q2.
Shell seems to have a strong earnings spurt ahead of it with rising energy costs globally; in addition to that, it has been one of the rare oil companies that haven’t dragged its feet when it comes to transitioning to renewable sources of energy.
Shell future in renewables.
On April 29, the company ປະກາດ it is shelling out $1.55 billion to acquire Sprng Energy group, India’s leading renewable power platform. Other such deals are pointing to the fact that Shell is looking to play a major part in the renewable space.
Whether a dividend increase happens may not be relevant for investors looking to position themselves in an energy giant whose price hasn’t risen to unmanageable levels.
Long-term investors could put greater emphasis on the fact that the company is looking to the future and will most likely play a significant role in energy like it has until now.
ຂໍ້ສັງເກດ: ເນື້ອຫາຢູ່ໃນເວັບໄຊທ໌ນີ້ບໍ່ຄວນພິຈາລະນາຄໍາແນະນໍາດ້ານການລົງທຶນ. ການລົງທຶນແມ່ນຄາດຄະເນ. ເມື່ອລົງທຶນ, ທຶນຂອງເຈົ້າມີຄວາມສ່ຽງ.
Source: https://finbold.com/analyst-claims-shell-could-raise-its-dividend-is-shel-a-buy/